Albemarle: Lithium Miner Caught In Bull-Bear Tug Of War - lithium ion batteries for sale

So far, Albemarle (Albemarle) has been a huge performer in 2017.
The global specialty chemicals company, which is leading in lithium, Bromo, refining catalysts and applied surface treatment, has grown by nearly 60% yen.
Stocks fell 1 on Friday.
Goldman Sachs traded 8% to 50% after being strongly bought from its stock by cutting its neutrality.
Meanwhile, an article in Barron magazine this week quoted Mark Stoeckle as saying --
Portfolio Manager, Adams Natural Resources Fund (PEO-
As the long-term advantage of "Albemarle is that it has a lot of lithium to mine and they are really good at mining.
"So, buy or sell?
The main investment argument here is that Albemarle is one of the world's largest producers of lithium
Basic components needed to make lithium
Ion batteries for all products from small Bluetooth phones to large Bluetooth phones
Formatted batteries for electric vehicles.
Therefore, the company is considered to be
Therefore, trade should be a premium for the wider material industry.
From the second quarter EPS report: as shown above, total revenue increased by 10% in the first six months of 2017 and adjusted EBITDA increased by 12.
5%, the adjusted EPS/share increased by 16% year on year.
While these numbers are certainly reliable, they generally do not represent "high flyers ".
Nevertheless, net sales reported by the lithium and advanced materials division were $317.
Second quarter 9 million
An increase of 36.
2% net sales of $2016 from 233 in the second quarter. 4 million.
Note, however, that this segment accounts for less than 45% of total net sales.
Source: Q2 presentation (available here ). Full-
In addition to an estimated $25 million reduction in the cap, the 2017 guidance remained unchanged
Ex and the corresponding $25 million Adjusted Free growthcash-flow.
Given the mid-point ($4) of the company's adjusted EPS guidance ).
30/share), closed at $137 on Friday.
19, P/E = 32x in the front view.
Given the relatively mediocre growth in sales and adjusted EBITDA, this seems to be at a high level.
Nevertheless, given the expected long-term growth in the lithium mining sector, an adjusted 16% per share gain/share increase is not worth sneezing.
Managed and owned conservatively-
End of the second quarter-only $1.
7 billion of the total debt (excluding the company's unsecured joint venture debt) and $1 billion in cash.
This works for a network.
The EBITDA ratio after debt adjustment is only 0. 9x.
However, free cash
Adjusted for the $0. 255 billion tax and repatriation payments associated with the sale of the Chemetall business, traffic has actually fallen from $0. 17 billion in the first six months of last year to $0. 238 billion.
Although the sale of lithium is undoubtedly bright
The spot of Albemarle looks like the other two parts (Bromo professional and refining solution) are not keeping up.
It is expected that the bromide part will be in the single
EBITDA achieved digit growth this year, but growth in performance Catalyst Solutions and heavy oil upgrade business is expected to slow.
The year ahead
The end 2017 P/E based on the bootstrap midpoint is 32 x.
This is a premium of more than 75% for the entire specialty chemicals industry.
Since the dividend yield is less than 1%, I have to agree with Goldman Sachs: Albemarle seems to be pricing perfectly.
The whole market and the stock of the company --
Time high, it seems to have matured.
That is to say, it is usually considered low level
Cost producer with a diverse portfolio of Lithium derivatives
Including lithium carbonate, lithium hydroxide, lithium chloride and value-
Professional lithium and reagents are added.
In addition, the company's very conservative balance sheet is positive.
Nevertheless, a modest growth rate does not seem to justify a premium of 75%. group.
But if the company goes back to $100, it's on my watchlist --$100 range.
This is because Albemarle is the leader in the global supply of lithium, and the market outlook for the growth of electric vehicle batteries is very good.
At the same time, a real high
In the lithium flyer-
Ion Space is a high-tech company (HPJ), a battery manufacturer ).
In the first six months of this year, Highpower's net income more than quadrupled compared to last year.
Sales in the second quarter increased by 40% year on year and EBITDA increased by 67%.
See more about HPJ in my article "China may follow the US"K.
France will make legislation for the future of 100% electric vehicles.
Disclosure: I am/We are HPJ PEO.
This article was written by myself and expressed my views.
I have not received compensation (except for Seeking Alpha ).
I have no business relationship with any stock company mentioned in this article.
Supplementary disclosure: I am an engineer, not a CFA.
The information and data provided in this article are obtained from company documents and/or sources that are considered reliable, but are not independently verified.
Therefore, the authors cannot guarantee their accuracy.
Please study on your own and contact a qualified investment consultant.
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